Andorra Population: 85,660

The landlocked Principality of Andorra is one of the smallest states in Europe, nestled high in the Pyrenees between the French and Spanish borders. For 715 years, from 1278 to 1993, Andorrans lived under a unique coprincipality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Bishop of Urgell). In 1993, this feudal system was modified with the introduction of a modern, constitution; the co-princes remained as titular heads of state, but the government transformed into a parliamentary democracy. Andorra has become a popular tourist destination visited by approximately 10 million people each year drawn by the winter sports, summer climate, and duty-free shopping. Andorra has also become a wealthy international commercial center because of its mature banking sector and low taxes. As part of its effort to modernize its economy, Andorra has opened to foreign investment, and engaged in other reforms, such as advancing tax initiatives aimed at supporting a broader infrastructure. Although not a member of the EU, Andorra enjoys a special relationship with the organization and uses the euro as its national currency.

conventional long form: Principality of Andorra conventional short form: Andorra local long form: Principat d'Andorra local short form: Andorra etymology: the origin of the country's name is obscure; since the area served as part of the Spanish March (defensive buffer zone) against the invading Moors in the 8th century, the name may derive from the Arabic "ad-darra" meaning "the forest"

Government type:

parliamentary democracy (since March 1993) that retains its chiefs of state in the form of a co-principality; the two princes are the president of France and bishop of Seu d'Urgell, Spain, who are represented in Andorra by the co-princes' representatives

1278 (formed under the joint sovereignty of the French Count of Foix and the Spanish Bishop of Urgell)

National holiday:

Our Lady of Meritxell Day, 8 September (1278)

Constitution:

history: drafted 1991, approved by referendum 14 March 1993, effective 28 April 1993 amendments: proposed by the coprinces jointly or by the General Council; approval required by two-thirds majority vote of the General Council, by ratification in a referendum, and by the sanctioning of the coprinces (2016)

Legal system:

mixed legal system of civil and customary law with the influence of canon law

head of government: Head of Government (or Cap de Govern) Antoni MARTI PETIT (since 12 May 2011)

cabinet: Executive Council designated by head of government elections/appointments: head of government indirectly elected by the General Council (Andorran parliament), formally appointed by the coprinces for a 4-year term; election last held on 31 March 2015 (next to be held in April 2019); the leader of the majority party in the General Council is usually elected head of government

election results: Antoni MARTI PETIT (DA) elected head of government; percent of General Council vote - 79%

Legislative branch:

description: unicameral General Council of the Valleys or Consell General de les Valls (a minimum of 28 seats; 14 members directly elected in multi-seat constituencies (parishes) by simple majority vote and 14 directly elected in a single national constituency by proportional representation vote; members serve 4-year terms); note - each voter casts two separate ballots - one for a national list and one for a parish list

highest court(s): Supreme Court of Justice of Andorra or Tribunal Superior de la Justicia d'Andorra (consists of the court president and 8 judges organized into civil, criminal, and administrative chambers); Constitutional Court or Tribunal Constitucional (consists of 4 magistrates) judge selection and term of office: Supreme Court president and judges appointed by the Supreme Council of Justice, a 5-member judicial policy and administrative body appointed 1 each by the coprinces, 1 by the General Council, 1 by the executive council president, and 1 by the courts; judges serve 6-year renewable terms; Constitutional magistrates appointed 2 by the coprinces and 2 by the General Council; magistrates' appointments limited to 2 consecutive 8-year terms

subordinate courts: Tribunal of Judges or Tribunal de Batlles; Tribunal of the Courts or Tribunal de Corts

Political parties and leaders:

Citizens' Initiative or IC [Sergi RICART] (including PS, VA, IC, and independents) Democrats for Andorra or DA [Antoni MARTI PETIT] Greens of Andorra or VA [Isabel LOZANO MUNOZ, Juli FERNANDEZ BLASI] Liberal Party or PLA [Jordi GALLARDO] Social Democratic Party or PS [Vincenc ALAY FERRER] Social Democratic Progress Party or SDP [Victor NAUDI ZAMORA] note: there are also several smaller parties at the parish level (one is Lauredian Union)

the US does not have an embassy in Andorra; the US ambassador to Spain is accredited to Andorra; US interests in Andorra are represented by the US Consulate General's office in Barcelona (Spain); mailing address: Paseo Reina Elisenda de Montcada, 23, 08034 Barcelona, Spain; telephone: [34] (93) 280-2227; FAX: [34] (93) 280-6175

Tourism, retail sales, and finance are the mainstays of Andorra's tiny, well-to-do economy, accounting for more than three-quarters of GDP. Andorra's duty-free status for some products and its summer and winter resorts attract millions of visitors annually, although the economic downturn in neighboring countries has curtailed the number of tourists. Agricultural production is limited - only about 5% of the land is arable - and most food has to be imported, making the economy vulnerable to changes in fuel and food prices. The principal livestock is sheep. Manufacturing output and exports consist mainly of perfumes and cosmetic products, products of the printing industry, electrical machinery and equipment, clothing, tobacco products, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products. Andorra uses the euro and is effectively subject to the monetary policy of the European Central Bank. Andorra's comparative advantage as a tax haven eroded when the borders of neighboring France and Spain opened; its bank secrecy laws have been relaxed under pressure from the EU and OECD. Slower growth in Spain and France has dimmed Andorra's economic prospects. Since 2010, a drop in tourism contributed to a contraction in GDP and a sharp deterioration of public finances, prompting the government to begin implementing several austerity measures to reduce the budget deficit, including levying a special corporate tax. The Government is also planning to institute an income tax at the behest of the Organization for Economic Cooperation and Development. The new tax will apply to anyone who lives in the principality for at least 183 days in a calendar year. The first $30,000 of income will be tax free, with the next $20,000 taxed at 5%. The balance of income exceeding the initial $50,000 will be taxed at 10%, which is still less than in most West European countries. Andorra’s Government also relaxed its residency and investment laws in 2012 to make the country more attractive to foreign investors. A person now must spend 90 days a year in the principality to qualify for residency, compared with the previous 180-day requirement. Foreigners now have the same property ownership rights as citizens. In addition, three new categories of residency permits were introduced. Anyone who is retired or at least not working in Andorra can obtain a permit in the first category by making a financial investment in the country of at least €400,000, which can include a property purchase.

1 public TV station and 2 public radio stations; about 10 commercial radio stations; good reception of radio and TV broadcasts from stations in France and Spain; upgraded to terrestrial digital TV broadcasting in 2007; roughly 25 international TV channels (2012)